{"id":50376867,"date":"2023-08-14T13:42:17","date_gmt":"2023-08-14T12:42:17","guid":{"rendered":"https:\/\/dialogochino.net\/?p=376867"},"modified":"2023-12-13T13:16:08","modified_gmt":"2023-12-13T13:16:08","slug":"376867-ecuador-set-to-vote-on-banning-oil-projects-in-yasuni-national-park","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/forests\/376867-ecuador-set-to-vote-on-banning-oil-projects-in-yasuni-national-park\/","title":{"rendered":"Ecuador set to vote on banning oil projects in Yasun\u00ed National Park"},"content":{"rendered":"\n

In 2007, Ecuador\u2019s then-president, Rafael Correa, called on the world to protect Yasun\u00ed, the Amazonian national park that is thought to be one of the most biodiverse places on the planet \u2013 and which also sits on the country\u2019s largest oil reserves.<\/p>\n\n\n\n

Launching the Yasun\u00ed-ITT Initiative, Correa asked for international cooperation to secure a US$3.6 billion fund that would help to keep this oil in the ground. If the goal was not reached, he said, exploitation would inevitably have to begin.<\/p>\n\n\n\n

The initial funding target was calculated at half the revenue Ecuador expected to realise from exploiting the Yasun\u00ed reserves. Some 846 million barrels of oil would no longer be extracted, and 407 million tonnes of carbon dioxide emissions would reportedly be avoided. The country would instead be compensated by the international community for the conservation of this corner of the Amazon, targeting US$350 million annually for 10 years, and preventing the environmental costs brought by oil production.<\/p>\n\n\n\n

In 2013, after collecting just US$13 million in six years, Correa told press that \u201cthe world has failed us\u201d, and announced the scrapping of the initiative. With this, he also declared that studies would begin to explore the exploitation of Yasun\u00ed\u2019s reserves at the Ishpingo, Tambococha and Tiputini (ITT) oil fields, also known as Block 43.<\/p>\n\n\n\n

Ten years have passed, and seven since drilling began<\/a>, but the debate over Yasun\u00ed\u2019s resources<\/a> is still raging.<\/p>\n\n\n\n

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Recommended<\/span><\/span><\/div><\/a>\n\n\n\n

After over a decade of intense campaigning<\/a> led by Yasunidos, a civil society collective focused on the protection of Yasun\u00ed, Ecuador\u2019s Constitutional Court issued<\/a> a ruling in May that paved the way for a nationwide referendum to decide whether oil exploitation at ITT-Block 43 should continue or be banned.<\/p>\n\n\n\n

The vote will take place on 20 August, coinciding with the country\u2019s general elections, which were initially due to be held in 2025 but were brought forward after President Guillermo Lasso dissolved<\/a> the National Assembly in May.<\/p>\n\n\n\n

The debate has long been a complicated one, but the central questions now are what will happen \u2013 to Ecuador and its economy, to Yasun\u00ed and its people \u2013 if the country votes to end oil activities in the block.<\/p>\n\n\n\n

The No vote: \u2018Unviable\u2019<\/h2>\n\n\n\n

According to official data, reserves of more than 1.6 billion barrels<\/a> of oil are located within ITT-Block 43, making it the largest hydrocarbon project in Ecuador\u2019s history.<\/p>\n\n\n\n

The block is managed by state-owned Petroecuador, but since 2016, four contracts have been signed with Chinese companies Sinopec and Chuanqing Drilling Engineering Company Limited to provide \u201cspecific integrated services\u201d for drilling and completion of oil wells, making them responsible for operations.<\/p>\n\n\n\n

\"president<\/div>
Ecuador\u2019s president Guillermo Lasso visited the Ishpingo field, part of ITT-Block 43, in April 2022. According to official data, reserves of more than 1.6 billion barrels of oil are located within the block. (Image: Bol\u00edvar Parra \/ Presidencia de la Rep\u00fablica del Ecuador<\/a>, Public Domain<\/a>)<\/div><\/div><\/div><\/div>\n\n\n\n

Petroecuador has reportedly said<\/a> that a \u201cYes\u201d vote to ban exploitation of ITT-Block 43 would lead to US$13.8 billion in lost income for the country over the next two decades.<\/p>\n\n\n\n

President Lasso, meanwhile, has said<\/a> that an end to oil production at the fields will leave the next government with only two options: \u201cReduce spending in sensitive and important social areas or reduce some subsidies\u201d. According to the Ministry of Economy and Finance, a quarter of the state budget<\/a> goes towards subsidies, within which pensions and welfare support are included.<\/p>\n\n\n\n

\u201cWe will have to think about how to replace this income, because it is necessary for the fight against child malnutrition, and the health, education and security budgets,\u201d Lasso added.<\/p>\n\n\n\n

In 2023, these subsidies amounted to just under US$4.8 billion, 23.7% of the budget. They include financial support for vulnerable groups, social security, domestic gas usage, and funds for urban and agricultural development. But around a third of subsidies go towards fuel, which the government says helps \u201crecover costs for the sector\u201d, as well as helping to combat inequality.<\/p>\n\n\n\n

According to the International Monetary Fund, Ecuador is among the top 15 countries with the highest fuel subsidies<\/a>, with the Ecuadorian state paying US$1 towards every kilogram of liquefied petroleum gas (LPG), an important source of domestic energy. While the average price in Latin America for a 15 kg cylinder of gas is reported to be US$13<\/a>, in Ecuador this costs US$1.6.<\/p>\n\n\n\n

You can\u2019t live off air, birds and reptiles. It is a very serious blow to the Ecuadorian economy if the \u2018Yes\u2019 vote wins<\/blockquote>Fernando Santos Alvite, Ecuador\u2019s mining and energy minister<\/cite><\/div><\/div>\n\n\n\n

In an interview with Di\u00e1logo Chino, Ecuador\u2019s current energy minister, Fernando Santos Alvite, was even more direct in his criticism of the \u201cYes\u201d option, describing it as \u201csuicide\u201d to ban oil exploitation in Yasun\u00ed.<\/p>\n\n\n\n

\u201cYou can\u2019t live off air, birds and reptiles. It is a very serious blow to the Ecuadorian economy if the \u2018Yes\u2019 vote wins,\u201d Santos said.<\/p>\n\n\n\n

\u201cIt is not a simple plebiscite. We are playing with the future of the country. Do we want a future driven by the wealth that nature, mining and oil have given us, or do we close off that future and enter a really uncertain period?\u201d<\/p>\n\n\n\n

Santos described an end to operations in the ITT fields as \u201cunviable\u201d, adding that it would be even more unworkable for infrastructure to be removed from the block within the next year, as the Constitutional Court has indicated will be required should the \u201cYes\u201d vote succeed.<\/p>\n\n\n\n

\"oil<\/div>
An oil project in the Yasun\u00ed National Park. Extraction began at the ITT-Block 43 in 2016. (Image: Julio Etchart \/ Alamy)<\/div><\/div><\/div><\/div>\n\n\n\n

Oil extraction in the area began<\/a> in September 2016, after several years of work to build access routes and install machinery. State-owned Petroecuador has reportedly invested US$1.9 billion in equipment and facilities.<\/p>\n\n\n\n

Shutting down operations in ITT-Block 43 would take at least five years and cost nearly US$500 million, Petroecuador manager Ram\u00f3n Correa told Di\u00e1logo Chino, adding that 230 production wells would have to be sealed with cement, 12 platforms dismantled and the Tiputini processing centre \u2013 the \u201cheart of the operation\u201d \u2013 would have to be demolished. This facility is where oil is separated before being transported from the Amazon to the coastal province of Esmeraldas, from which it is exported.<\/p>\n\n\n\n

The Yes vote: Beyond oil<\/h2>\n\n\n\n

The Yasun\u00ed National Park is the largest protected area in Ecuador, extending over more than 1 million hectares<\/a> between the provinces of Orellana and Pastaza, in the country\u2019s north-eastern Amazon. It is home<\/a> to 1,300 tree species, over 600 bird species and at least 268 fish species, and is listed as a Biosphere Reserve<\/a> by UNESCO. It is also home to the Tagaeri and Taromenane<\/a>, the last Indigenous groups to live in isolation in Ecuador.<\/p>\n\n\n\n

\"two<\/div>
Scarlet macaws in the Yasun\u00ed National Park. The park is home to 1,300 tree species, more than 600 bird species and at least 268 fish species, and is listed as a Biosphere Reserve by UNESCO. (Image: Doug Greenberg<\/a>, CC BY NC<\/a>)<\/div><\/div><\/div><\/div>\n\n\n\n

\u201cIn one hectare of Yasun\u00ed there is more biodiversity than in the whole of North America,\u201d claims Pedro Bermeo, spokesperson for Yasunidos. \u201cIn addition, there are peoples living in voluntary isolation \u2013 to exploit it would be ethnocide.\u201d<\/p>\n\n\n\n

In a recent report, \u201cChina in the Yasun\u00ed-ITT<\/a>\u201d, released by the NGO Latinoam\u00e9rica Sustentable in July, authors called on the Chinese government to encourage Chinese companies to \u201cwithdraw in an orderly manner\u201d from ITT-Block 43, pointing to oil activities as contrary to the country’s international climate commitments. They also called on the government to monitor and dissuade companies from engaging in socially or environmentally sensitive areas, such as those with Indigenous peoples in voluntary isolation.<\/p>\n\n\n\n

For Bermeo, a \u201cNo\u201d vote in the referendum is impossible to countenance: \u201cIt is not in our plans or in anyone\u2019s head, only in the heads of those who want to govern and profit from Yasun\u00ed. We know that the \u2018Yes\u2019 will win. And Ecuador must necessarily map out a post-oil future.\u201d<\/p>\n\n\n\n

Leaders from the country\u2019s Amazonian provinces have also joined the \u201cYes\u201d campaign. Juan Bay, president of the Waorani Nation, told Di\u00e1logo Chino: \u201cMy people have seen zero benefits [from oil projects] \u2013 no social, economic or political development. We will vote and we are campaigning for a \u2018Yes\u2019.\u201d<\/p>\n\n\n\n

The position of the Indigenous communities has also been swayed by the almost 900 oil spills that occurred in the Ecuadorian Amazon between 2015 and 2021, some of them affecting Yasun\u00ed<\/a>.<\/p>\n\n\n\n

\"Grupo<\/div>
A delegation of the Waorani Baihuari people at the biodiversity commission of Ecuador\u2019s national assembly in 2019. They are among the Amazon Indigenous groups fighting against oil exploitation in the Yasun\u00ed National Park. (Image: Fernando Sandoval<\/a> \/ National Assembly of Ecuador<\/a>, CC BY-SA<\/a>)<\/div><\/div><\/div><\/div>\n\n\n\n

\u201cThe vote is not limited to the issue of oil, but puts at stake the space in which Indigenous peoples live,\u201d Zenaida Yasacama, vice-president of the Confederation of Indigenous Nationalities of Ecuador (CONAIE), told Di\u00e1logo Chino.<\/p>\n\n\n\n

\u201cWe are prepared to give our lives for Yasun\u00ed. The era of exploitation, which has affected the environment so much and impoverished our communities, is over.\u201d<\/p>\n\n\n\n

The alternatives<\/h2>\n\n\n\n

According to official figures, the seven years of exploitation have yielded a positive balance. An output of more than 57,000 barrels per day<\/a> has been reached, representing 11% of national production. In 2022, the government earned US$1.2 billion from the sale of this oil. However, according to Yasunidos\u2019 calculations, the net income from this block is US$148 million a year \u2013 a figure that can be compensated, they claim.<\/p>\n\n\n\n

The possibility of the country\u2019s oil running out has been under discussion in Ecuador for decades. \u201cThat moment is today, it has finally arrived,\u201d Luis Arauz-Jaramillo, a researcher at the Central University of Ecuador in Quito, told Di\u00e1logo Chino. \u201cAt the current rate of extraction, proven reserves will run out<\/a> by 2028. Moreover, in the global context, according to World Bank data, investment in the oil sector has been reduced<\/a> by 20% in just four years.\u201d<\/p>\n\n\n\n

For Arauz-Jaramillo, the transition to a post-oil Ecuador should be gradual and start now.<\/p>\n\n\n\n

\u201cThe first step should be to avoid oil exploitation in the country\u2019s megadiverse areas. Why? Because their economic value will grow year by year, in a world where it is becoming increasingly difficult to find territories with these characteristics,\u201d the researcher said.<\/p>\n\n\n\n

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The second step in finding economic alternatives, according to Arauz-Jaramillo, is political, such as gradually curbing some state subsidies.<\/p>\n\n\n\n

Economist Wilma Salgado, a former finance minister, is of the same opinion: \u201cIf we eliminate the subsidies that are given as tax exemptions to the richest 10% of the country, the treasury could receive US$598 million a year. This is four times more than the estimated real loss from leaving the Yasun\u00ed oil in the ground.\u201d<\/p>\n\n\n\n

Moreover, Salgado claimed in an interview with Di\u00e1logo Chino that if the state were to focus on collecting the outstanding debts owed to the state tax office by Ecuador\u2019s top 500 debtors, it would increase its resources by almost US$2 billion, and \u201cthere would be no need to put Yasun\u00ed at risk\u201d.<\/p>\n\n\n\n

President Lasso has confirmed<\/a> that Ecuador\u2019s elections and referendum will continue as planned on 20 August, despite the assassination of presidential candidate Fernando Villavicencio at a campaign event in Quito last week. While no formal polls of voting intention in the Yasun\u00ed ballot have been conducted, some commentators<\/a> and informal surveys<\/a> have suggested voters may lean marginally towards \u201cYes\u201d to end exploitation at ITT-Block 43.<\/p>\n","protected":false},"excerpt":{"rendered":"

After decades of debate, Ecuadorians will decide the fate of oil reserves beneath an Amazon biodiversity hotspot in 20 August referendum<\/p>\n","protected":false},"author":3907,"featured_media":50376904,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[757,50039902],"tags":[506,511,547,50029971],"hashtags":[],"country":[50002594],"class_list":["post-50376867","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","category-forests","tag-amazon","tag-biodiversity","tag-fossil-fuels","tag-oil","country-ecuador"],"acf":[],"yoast_head":"\nEcuador set to vote on banning oil projects in Yasun\u00ed National Park | Dialogue Earth<\/title>\n<meta name=\"description\" content=\"After decades of debate, Ecuadorians will decide the fate of oil reserves beneath an Amazon biodiversity hotspot in 20 August referendum\" \/>\n<meta name=\"robots\" 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